Account payment using barcode information exchange

ABSTRACT

A system for effecting transactions, typically retail transactions, by using account information stored on a computing device, such as a cell phone, wherein the computing device is placed on an optical reader at the merchant&#39;s establishment. The computing device generates a pattern, such as a bar code, on a visual display, which can be read by the merchant&#39;s optical reader. The display encodes account number and other information for the transaction. The merchant&#39;s optical reader also includes a display, which can be read by the computing device by using the cell phone camera. The merchant&#39;s display includes transaction amount and other information allowing updating of account information in the computing device. The computing device may include security codes and/or a fingerprint reader to allow access to the account information. The use of the fingerprint reader can provide positive identification of the individual, which may be used for restricted items such as age restricted items such as beer, cigarettes, and senior discounts.

RELATED APPLICATIONS

This application is a continuation in part of U.S. patent applicationSer. No. 11/484,081 titled System, Method And Program Product ForAccount Transaction Validation, filed Jul. 7, 2006 by Robert Lovett,which is a continuation in part of U.S. patent application Ser. No.11/445,553, Titled “System, Method and Program Product For Credit CardTransaction Validation,” filed Jun. 2, 2006 by Robert Lovett, whichclaims the benefit under 35 USC 119(e) of U.S. Provisional Application60/689,576, filed Jun. 13, 2005 by Robert Lovett, all of which areincorporated herein by reference in their entirety.

FIELD OF THE INVENTION

This invention relates to account transactions, and more particularly towireless account transactions.

BACKGROUND OF THE INVENTION

There have been many attempts to prevent the illegal use of credit cardsin shopping malls, by telephone, Internet and especially AutomatedTeller Machines (ATM).

These efforts include Personal Identification Numbers (PIN) the use ofmother's maiden names as a secret identification, and requiring creditcard holders to use additional ID cards such as a driver license. Allattempts to use static information have drawbacks since they are easilylearned and passed on to other users. Once the static identificationnumber is learned, it may be used to make fraudulent credit cardpurchases until the fraud is detected and the credit card account isclosed.

Today, each purchase using a credit card, where the credit card is notpresent such as for internet or telephone transactions, must beaccompanied by an additional security number, designated the CVV (cardverification and validation) number. The CVV number may be alternativelycalled CVV2 or CID (card identification) or CCV (credit cardverification or validation) by various credit card companies. The CVVnumber is typically on the back of the credit card, as with Master Cardor Visa, but may be on the front of the card, as with American Express.The CVV number typically uses three digits, but may use four as withAmerican Express. Merchants are not allowed to store CVV numbers intheir database with the credit card number as a security measure.Because CVV numbers are not in the merchant's database, CVV numbers willnot be disseminated if a merchant's database is compromised, assumingthe merchant follows the rules and does not record the CVV number. Sincethe CVV number is not in the database, each transaction must beaccompanied by a new request for the CVV number from the cardholder.

However, since the CVV numbers are disclosed to the merchants, theiremployees, and anyone in the communications chain, they may easily berecorded and passed on.

Thus, there is a need for a system and method for securing credit cardtransactions that does not generate information that may be easilydetermined, circumvented or passed on to others and used to generatefraudulent transactions.

SUMMARY OF THE INVENTION

Briefly, the present invention relates to a system for effectingtransactions, typically retail transactions, by using accountinformation stored on a computing device, such as a cell phone, whereinthe computing device is placed on an optical reader at the merchant'sestablishment. The computing device generates a pattern, such as a barcode, on a visual display, which can be read by the merchant's opticalreader. The display encodes account number and other information for thetransaction. The merchant's optical reader also includes a display,which can be read by the computing device by using the cell phonecamera. The merchant's display includes transaction amount and otherinformation allowing updating of account information in the computingdevice. The computing device may include security codes and/or afingerprint reader to allow access to the account information. The useof the fingerprint reader can provide positive identification of theindividual, which may be used for restricted items such as agerestricted items such as beer, cigarettes, and senior discounts.

System and computer program products corresponding to theabove-summarized methods are also described and claimed herein.

Additional features and advantages are realized through the techniquesof the present invention. Other embodiments and aspects of the inventionare described in detail herein and are considered a part of the claimedinvention. For a better understanding of the invention with advantagesand features, refer to the description and to the drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The subject matter which is regarded as the invention is particularlypointed out and distinctly claimed in the claims at the conclusion ofthe specification. The foregoing and other objects, features, andadvantages of the invention are apparent from the following detaileddescription taken in conjunction with the accompanying drawings inwhich:

FIG. 1A illustrates an exemplary display for a credit card on acomputing device.

FIG. 1B illustrates an exemplary display for credit card informationincluding a bar code and an encrypted CVV code in accordance with thepresent invention.

FIG. 2 illustrates an exemplary display showing the selection oftransaction types and hosts available.

FIG. 3 is an exemplary system block diagram for a networked computingdevice in accordance with the present invention.

FIG. 4 is a schematic diagram of a system using the present invention.

FIG. 5 illustrates the face of an exemplary computing device inaccordance with the present invention.

FIG. 6 illustrates a process for using the computing device of FIG. 5 toexecute a credit card transaction.

FIG. 7 illustrates a process for using the computing device of FIG. 5 toexecute an over the counter credit card transaction.

FIG. 8 shows an exemplary method for calculating an encrypted timedependent CVV code.

FIG. 9A and FIG. 9B illustrate an exemplary coded clock in accordancewith the present invention.

FIG. 10 illustrates the computing device of FIG. 5 with an E*Tradetransaction selected.

FIGS. 11A and 11B illustrate the code minute and code hour tables forthe E*trade transaction of FIG. 10.

FIG. 12 illustrates the computing device of FIG. 5 with a Banktransaction selected.

FIGS. 13A and 13B illustrate the code minute and code hour tables forthe bank transaction of FIG. 12.

FIG. 14 illustrates the computing device of FIG. 5 with a Virtual CreditCard (VCC) transaction selected.

FIGS. 15A and 15B illustrate the code minute and code hour tables forthe VCC transaction of FIG. 14.

FIG. 16 illustrates the computing device of FIG. 5 with an ATM(Automatic Teller Machine) transaction selected.

FIGS. 17A and 17B illustrate the code minute and code hour tables forthe ATM transaction of FIG. 16.

FIG. 18 illustrates the computing device of FIG. 5 with a subway faretransaction selected.

FIGS. 19A and 19B illustrate the code minute and code hour tables forthe subway fare transaction of FIG. 18.

FIG. 20 illustrates an exemplary system having a direct opticalinterface between the merchant equipment and the customer's computingdevice.

FIG. 21A and FIG. 21B illustrate two views of an exemplary barcodescanner including a barcode generator in accordance with the presentinvention.

FIG. 22 illustrates an exemplary cell phone in accordance with thepresent invention.

The detailed description explains the preferred embodiments of theinvention, together with advantages and features, by way of example withreference to the drawings.

DETAILED DESCRIPTION OF THE INVENTION

Briefly, the present invention relates to a system for effectingtransactions, typically retail transactions, by using accountinformation stored on a computing device, such as a cell phone, whereinthe computing device is placed on an optical reader at the merchant'sestablishment. The computing device generates a pattern on a visualdisplay, such as a bar code display, which can be read by the merchant'soptical reader. The display encodes account number and other informationfor the transaction. The merchant's optical reader also includes adisplay, which can be read by the cell phone by using the cell phonecamera. The merchant's display includes transaction amount and otherinformation allowing updating of account information in the computingdevice. The computing device may include security codes or a fingerprintreader to allow access to the account information. The use of thefingerprint reader can provide positive identification of theindividual, which may be used for sales of restricted items such as agerestricted items like beer and cigarettes.

The present invention is for a cell phone networked device or othernetworked device for generating credit card protection codes andassisting in efficient transaction processing.

The present invention overcomes the vulnerability of the static CVVnumber by providing an encrypted CVV code which is newly computed foreach new card transaction. A code calculation is never reused for adifferent transaction. Thus, the merchant, or anyone else observing thetransaction would be unable to duplicate the transaction or generateanother transaction with the information provided. Any attempt to re-usethe CVV code would generate a security alert which could be provided atthe time of the fraudulent transaction. As a further benefit of thepresent invention, a cardholder may use a PIN to enable the device togenerate the CVV code, protecting the device from loss or theft. As afurther benefit, the transaction amount may be used in addition to timeto generate the CVV code, thus validating the amount entered by themerchant, thus preventing an unauthorized amount from being sent to thecard processing center. Since the invention utilizes the CVV numberstructure that is already in place, little change is required in thefield equipment now in place. Store equipment to read and process creditcards and communicate with the card processing center is unchanged. Eachcardholder may utilize new software installed on a cell phone or otherdevice, and the card processing centers may add software to perform theadditional processing. Regular credit cards may be processed as beforewith no change to the equipment.

The present invention envisions the use of a multi-function cell phonewhich may include web and music downloading features, may allow storingof notes, exchange of pictures, and may include the storage of creditcard information, eliminating the plastic. In accordance with thepresent invention, such multi-function cell phone device, however, mayinclude more capability than simply storing credit card information. Thecell phone device may compute encrypted validation codes (CVV codes) toimprove credit card security. Further, the cell phone device may displaya barcode having the complete credit card information including thecomputed encrypted validation code. The barcode may be read by amerchant's terminal device, eliminating transcription errors. Furtherfeatures of the cell phone device may include the entry of a PIN toactivate the credit card information, providing security in the case ofa stolen cell phone. The stolen cell phone credit card information maybe quickly disabled by calling the cell phone and providing a disablingcode. In one embodiment, the cell phone device may include a fingerprintreader to provide alternate user validation and eliminate the need toenter the PIN, simplifying and speeding sales transactions.

The present invention generates an encrypted time dependent validationcode (CVV code) to validate each transaction. The CVV code may bepreferably three or four characters long and may be transmitted in placeof the CVV validation number presently in use and thus may utilize muchof the same card processing equipment and infrastructure presently inplace. In accordance with one embodiment of the invention, the creditcard may be a virtual credit card (VCC), which may exist entirely withina computer or network and have no physical plastic embodiment. Thevirtual credit card exists as a software program on a computer and canbe referenced by using the computer display. In a conventional creditcard, the information is static, whether embossed, printed or writteninto the magnetic stripe. The virtual credit card program can includedynamic and computed information. In particular, the virtual credit cardcan compute an encrypted validation code with significant securityadvantages. The virtual credit card may also use improved identificationfeatures to insure the authorized owner of the card is present. Inparticular, the VCC may require entry of a PIN to reference the card. Inadvanced cards, a fingerprint reader may be installed to obviate theneed for entry of the PIN and speed the transaction process. In oneembodiment, a traditional credit card may have a virtual credit cardcapability and may be usable with the static CVV number and/or theencrypted CVV code as the user may select.

In a further embodiment, the VCC may be networked and the networkconnection may be used in part of the validation process. The networkmay be a cell phone network, telephone network, or computer networklike, for example, the Internet.

FIG. 1A illustrates an exemplary display for a credit card on acomputing device. Referring to FIG. 1A, the display is presented on thescreen of the computing device, which may be a cell phone or otherdevice, preferably a personal and portable, hand held computing device.Information is displayed in a rectangular format simulating a plasticcredit card so that the different types of information are easilyidentified by one familiar with plastic credit cards. Informationincludes a type of card 102, a card number 106, expiration date 108,name of a cardholder 110, and a static CVV number 112. The static CVVnumber may be more typically located on the back of a plastic card, butis shown on the screen within the rectangle for convenience. The staticCVV number shown in FIG. 1A is the static CVV number that would bedisplayed on the back of an associated the plastic card embodiment andmay be displayed in one embodiment of a display for the credit cardstored in the computing device.

FIG. 1B illustrates an exemplary display for credit card informationincluding a bar code and an encrypted CVV code in accordance with thepresent invention. The display of FIG. 1B may be shown on the screen ofthe computing device in accordance with the present invention. Thedisplay of FIG. 1B includes the information of FIG. 1A and furtherincludes a bar code 104. The bar code 104 information may include thecard number 106, expiration date 108 and encrypted CVV code 114. Theencrypted CVV code 114 shown in FIG. 1B may be a time dependentencrypted CVV code 114. The use of the bar code 104 permits rapidautomatic transcription of all pertinent credit card data, eliminatingerrors and improving speed and convenience. The encrypted CVV code 114improves the security of a transaction validation process.

FIG. 2 illustrates an exemplary display showing the selection oftransaction types and hosts that may be available. Referring to FIG. 2,the display 202 may be shown as part of the screen on a cell phone orother device and may be shown separately or in conjunction with thedisplay of FIG. 1B. The display 202 of FIG. 2 shows a menu 204 oftransaction types and allows scrolling 206 through the menu to selectthe desired transaction type. The illustrated transaction types 204include E-Trade® account, Bank account, VISA® credit card, subwayticket, Virtual Credit Card, or ATM account. Certain other accounts andtypes of transactions may be included as well. Each account is set upwith its own PIN number and static CVV number 112 or equivalent.Further, each account may include its own set of coding variables forencryption of time and other information, and/or may include its ownspecific encryption method.

FIG. 3 is an exemplary system block diagram for a networked computingdevice in accordance with the present invention. The network 316 ispreferably a cell phone network and the networked computing device 302is preferably a cell phone. The networked computing device 302 typicallyincludes one or more processors 304 coupled to memory 308. Typically thememory 308 may include several types of different densities and speedsand may be volatile and nonvolatile. The processor 304 is coupled to aclock 306 providing the time of day and date. The processor 304typically displays information on a display 310 such as an LCD displayand typically has a keypad 312 for entry of numbers and selection ofmodes. The processor 304 is connected to the network 316 through anetwork interface 314 for connection to a bank or other processingcenter (not shown). The network interface 314 may be a cell phone orcell phone module for connection to a cell phone network or wireless LAN(local area network) device for connection to a digital network. Thenetwork 316 may be used for downloading card information and/or codinginformation, and for making or validating transactions. The network 316may also provide voice communications for the cell phone 302 and/or mayprovide the date and time of the device clock 306. In a preferredalternative embodiment, the computing device may include a fingerprintreader 318. The fingerprint reader may be used in place of the PIN forcardholder identification.

FIG. 4 is a schematic diagram of a system using the present invention.The system includes a financial institution shown in FIG. 4 and referredto hereafter as bank 410. The bank 410 includes a central computer 412connected to a database 414 in which credit card accounts aremaintained. The central computer 412 further includes a bank clock 413.Also included in the system of FIG. 4, is a cardholder 416 whose creditcard account is held by the bank 410. The cardholder 416 has a computingdevice 302 of the present invention to protect the cardholder's creditcard account by providing encrypted CVV codes 114 for each transaction.The computing device 302 also includes a clock 306 used to validatetransactions, as will be discussed. The system of FIG. 4 also includes amerchant 418 who supplies products or services to the cardholder 416,and who presents authorized charges to the bank 410 to be charged to thecardholder's credit card account.

As illustrated in FIG. 4, the merchant 418 presents at 420, a bill forgoods or services to the card holder 416 which includes the amount to bepaid by the card holder 416. The cardholder 416 enters the amount to bepaid into the computing device 302. The computing device 302 thencalculates the encrypted CVV code 114. The computing device may use, forexample, a combination of the PIN of the card holder, the time on theclock 306, and the amount to be paid, and the static CVV code 112 tocompute the coded CVV 114. The CVV code 114 is then displayed by thecomputing device. The cardholder then presents 422 the merchant with thecardholder's credit card information and the CVV code 114.

The merchant 418 then sends the credit card number of the cardholder416, the amount charged, and the coded CVV 114, along with any otherinformation needed to complete the transaction, to the bank 410 at 424.The bank 410 receives the data sent by the merchant 418, finds theaccount information for the credit card number in the database 414 forthe card holder 416, and using the PIN from the database 414 and theamount reported by the merchant at 424, together with the transactiontime and original static CVV number 112, validates the coded CVV 114. Ifthe transaction is approved, an approval is sent from the bank to themerchant 418 as shown at 428, and the transaction is complete.

The cell phone clock 306 and bank clock 413 will normally besynchronized by the network, however, slight drift may occur if the cellphone is out of range of the network or for other similar reasons. Theclock synchronization can be accomplished by analyzing the merchant'sdollar value each time the credit card protection device is used. Themerchant's price will be presumed to be accurate and legitimate, thusthe time can be set by those values unless they are in conflict withcomputing device 302 by a larger margin than expected by the bankscomputer 412. During this synchronization process, the bank's computer412 will keep a history on each computing device 302 and its modelnumber in order to best predict its time drift at its next use.

If the cardholder 416 should lose the computing device 302, thecardholder will call the bank and the credit cards in the computingdevice 302 may be invalidated in the banks database 414. The bank mayfurther send a message to the computing device 302 and disable creditcard functions on the computing device 302.

If someone finds the lost computing device 302, the finder or attemptedfraudulent user will be unable to access the credit card account sincethey must have knowledge of the PIN, and that PIN must be entered intothe computing device prior to its use and acceptance by the bank'scomputer 412. After some number of failed attempts to fraudulently usethe computing device 302, the bank's computer 412 will temporary disableor flag the account in the bank's computer database 414 until therightful owner calls to report a loss or correct a mistake. If someonetries to fraudulently use the computing device 302 it will give noindication to the user until the banks processing center rejects thepurchase back to the merchant which will take time and alert the bank toa possible fraudulent attempt.

FIG. 5 illustrates the face of an exemplary computing device inaccordance with the present invention. The computing device 302 ispreferably a networked computing device and preferably a cell phone orequivalent device. In one embodiment of the invention, the method iscoded into a program that may be downloaded to one or more types of cellphones. Thus, the specific look of the face would be that of the cellphone and the look of the face and operation of the buttons may besomewhat different from the given example, yet embodying the teachingsherein. The computing device of FIG. 5 comprises an LCD screen 310, anumeric keypad 502, at least two function buttons: the DTK button 510and the Code button 512, and a fingerprint reader 318. The LCD screen310 is shown displaying the credit card information in both barcode 504format and numeric format 506, 508. A first numeric line 506 shows thecredit card number. A second numeric line 508 shows the expiration dateand CVV code 114. The barcode information 504 includes the credit cardnumber, the expiration date, and the CVV code 114. The CVV code 114 ispreferably the time dependent coded CVV 114 in accordance with thepresent invention. A scroll function 516 may be used to scroll throughseveral available credit cards to select the desired credit card. Thenumeric keypad 502 is used for entering a PIN to enable the device or aparticular credit card, or to enter a transaction amount, or otherinformation. The Code key 512 initiates the calculation of the CVV code114. The DTK key 510 is used to signify a duplicate transaction, i.e.,the same transaction reentered because of some problem or fault. In apreferred embodiment, a fingerprint reader 318 may be used to enable thedevice or a particular credit card as an alternative to the PIN. Readingthe fingerprint is quicker and simpler than keying in a PIN and does notrequire the cardholder to remember the PIN.

FIG. 6 illustrates a process for using the computing device of FIG. 5 toexecute a credit card transaction. Referring to FIG. 6, the cardholderfirst activates the credit card module 602. Activation may be done byentering the PIN or by pressing the finger against the fingerprintreader 318. In addition, the computing device 302 may have a special keyor menu required to select a credit card mode among the many modes ofthe computing device 302. The next step is to select the mode oftransaction 604, whether the transaction is a card not presenttransaction, or an over the counter transaction. A card not presenttransaction includes telephone or WEB purchases or other situationswhere the computing device is not available to be scanned by themerchant. Over the counter transactions include transactions where themerchant may scan the computing device screen with a barcode scanner.

If card not present transaction mode is selected, the next step is toselect the credit card or transaction type 606. The screen will normallydisplay the default credit card and no action is required to accept thedefault card. If another card is desired, the scroll function may beused to scroll through the available cards to select the desired one608. Next, the transaction amount is entered 610. The code key, orequivalent function, may be pressed to generate the coded CVV 114, andthe resulting coded CVV 114 and credit card information may be providedto the merchant 612. Entering the transaction amount enables thecomputing device to include information for validation of thetransaction amount in the coded CVV 114.

FIG. 7 illustrates a process for using the computing device of FIG. 5 toexecute an over the counter credit card transaction. Referring to FIG.7, the cardholder first activates the credit card module 602 aspreviously described for FIG. 6. The computing device 302 then computesthe coded CVV 114 and the cardholder then provides the results to themerchant 612. Merchants with a terminal equipped to read the barcode maysimply scan the barcode to receive all of the credit card information.The numeric information may be transcribed manually or used to check theautomatic barcode results. Since the cardholder will get a sales receipt704 verifying the transaction amount, the step of entering thetransaction amount to validate the transaction amount through the bankmay add insufficient value to be worth the effort, however this may bedone simply by selecting the card not present mode.

Generating A Time Dependent Coded CVV Code

FIG. 8 shows an exemplary method for calculating an encrypted timedependent CVV code 114. Other methods may be used for encrypting the CVV114 as are known in the art of data encryption. The encrypted CVV codel14 should not be easily decoded to produce an altered transaction or afraudulent transaction. In accordance with the invention, the encryptedcode value 114 should preferably be computed separately for eachtransaction so that the CVV code 114 cannot be reused successfully for afraudulent transaction. One exemplary method of ensuring a change in CVVcode 114 is to use a time value as part of the data or part of theprocess for encryption. A further method of improving security is to usea different set of code variables for each device. The code variableswould be known only to the processing center so that only the processingcenter could validate the transaction. A further feature which may beincluded, where needed, is to encode or encrypt data such as the sellingprice to further validate the transaction, preventing changes along thecommunication path from the original sales clerk to the bank processingcenter.

Referring to FIG. 8, the current time is converted to coded time values802. The cardholder's PIN is then compared to the coded minutes 804 andthe static CVV number 112 is compared to the coded hour value 806. Thefirst two comparison results are compared 808 and a table index value isdetermined 810. The index is used to find an algorithm multiplier from aunique table 810. The algorithm multiplier is used with the transactiondollar amount to derive a product 812. Then the time, date, PIN, staticCVV number 112 and product 812 are summed 814. The result is the timedependent encrypted CVV code 114 to be given to the merchant 816 inplace of the conventional static CVV number 112.

The present method utilizes a coded, or encrypted, clock, which is nowdescribed.

FIG. 9A and FIG. 9B illustrate an exemplary coded clock in accordancewith the present invention. The clock of FIGS. 9A and 9B may be used,for example, for the exemplary VISAS card type shown displayed in FIG.1A, FIG. 1B, FIG. 2, and FIG. 5. Referring to FIG. 9A, the set ofcircles 902, 904 represents a minute table. The inner circle 904 showsthe minutes in an hour and the outer circle 902 shows a code minutevalue assigned to each respective minute. The set of sixty valuescorresponding to sixty minutes is different for each cell phone deviceand the values programmed into the computing device is known also by thebank transaction center. The radials 906 shown illustrate severalexemplary minute values and corresponding code minute values. For theexample calculation, the time is eight minutes after the hour, which hasa corresponding code minute value of 1163. A PIN value of 3815 iscompared with the code minute value of 1163.

The second set of circles, FIG. 9B, represents an hour table. The innercircle 910 shows the hours in a day and the outer circle 908 shows acode hour value assigned to each respective hour. The set of twenty fourvalues corresponding to twenty four hours is different for each cellphone device and is known by the bank transaction center. The radials912 shown illustrate several exemplary hour values and correspondingcode hour values. For the example calculation, the time is twenty-onehours after midnight, which has a corresponding code hour value of 4352.A static CVV number of 718 is compared with the code hour value of 4352.

Further details of the coding process may be observed by following anexample using the following exemplary data:

Static CVV 112 printed on card 718 Cardholders PIN 3815 Merchant's Price$673.00 Year 06 Month 04 Day 25 Hour 21 Minute 08

First, the coded minute is found using the minute table of FIG. 9A. Foreight minutes past the hour, the coded minute table value is 1163. Tocompare the coded minute value and the card holders PIN, subtract thesmaller value from the larger value to arrive at a positive result.

3815 PIN

−1163 Coded Minute Value

2652 First Result

Second, the coded hour value is found using the hour table of FIG. 9B.For twenty-one hours, the coded hour value is 4352. The coded hour valueis compared with the static CVV number 112 by subtracting the smallervalue from the larger. Thus,

4352 Coded hour value

−718 CVV number

3634 Second Result

The results are then compared by subtracting the smaller from thelarger,

3634 First Result

−2652 Second Result

982 Final Comparison

The index algorithm value is found from the final comparison byselecting the smallest and largest two digits in the final comparisonand keeping the order of the two digits reading from left to right. Theindex algorithm in this example is 92. The index is used to select amultiplier from an index algorithm table.

Each cell phone device includes a unique index algorithm table of 99entries. The table entries are known only by the card processing center.Each cell phone device has a different set of entries to produce aunique coded CVV 114 result for each different cell phone. The tableentries may be loaded upon issue of the cell phone device or downloadedover the network as discussed above. Table 1 shows an exemplary table ofmultiplier entries. A partial listing of table entries is shown toindicate the general structure of the table and show entries actuallyused in the example. Referring to Table 1, the index ranges from 1 to99. Each corresponding entry may be any number, but preferably a numberbetween 0.01 and 1.0. For this example, entry 92 in the table is equalto 0.1028. The transaction amount is $673.00. Multiplying thetransaction amount times the multiplier results in 673×0.1028=69. Onlythe dollar portion of the transaction amount is used in thiscalculation.

TABLE 1 Index Multiplier  1 .0200  2 .0233 . . . . . . 14 .0701 15 .0381. . . . . . 92 .1028 . . . . . . 99 .0810

Now the data can be summed. Thus:

718 CVV number 112 printed on card 38 first two digits of cardholder'sPIN 15 second two digits of cardholder's PIN 69 price × multiplier fromTable 1, =673 × 0.1028 06 year 04 month 25 day 21 hour +08 minute 904sum result used as new encrypted CVV code given to merchant.

The date and time from a conventional Julian calendar/clock based onUniversal Time (GMT) to make the time the same worldwide. If the sumresult has more than the number of digits in the CVV number 112 used bythe respective credit card company, the left digits may be deleted totruncate the number to the proper number of digits.

The bank transaction center may reverse the calculations to validate thetotal price.

Thus, the total of

718 CVV number 112 printed on card 38 first two digits of cardholder'sPIN 15 second two digits of cardholder's PIN 06 year 04 month 25 day 21hour +08 minute 835 sum

The sum may be subtracted from the time dependent CVV of 904:

904 Time dependent CVV −835 Sum from above 69 Remainder

Using the time to determine the coded time values and index algorithm asabove gives the multiplier times the merchant's reported transactiondollar amount:

0.1028×$673.00=69,

which agrees with the remainder above and validates the transaction.

Thus described is a coding method that may produce a new encrypted CVVcode 114 for each transaction to prevent the CVV code 114 from beingcopied and used by another party for a fraudulent transaction.

Other Transaction Types

FIG. 10 through FIGS. 19A and 19B illustrate different types oftransactions involving different types of accounts. Each type of accountprovides a PIN number, or equivalent, and a static CVV number orequivalent, to the code generation process of FIG. 8. Each account mayhave a different associated clock table for use with the code generationprocess.

FIG. 10 illustrates the computing device of FIG. 5 with an E*Tradetransaction selected. Note that a specific E*Trade PIN may be requiredand a coded login code may be computed in place of the coded CVV 114.

FIGS. 11A and 111B illustrate the code minute and code hour tables forthe E*trade transaction of FIG. 10. Note that the clock tables areunique for E*Trade. The clock tables may further be unique for eachcardholder or computing device.

FIG. 12 illustrates the computing device of FIG. 5 with a Banktransaction selected.

FIGS. 13A and 133B illustrate the code minute and code hour tables forthe bank transaction of FIG. 12. Note that the clock tables are uniquefor the bank.

FIG. 14 illustrates the computing device of FIG. 5 with a Virtual CreditCard (VCC) transaction selected. The virtual credit card is a creditcard that exists only as a software object and has no plasticembodiment. The VCC may have sixteen digits with the last four beingzero to prevent its use except by cell phone device. The virtual creditcard may be downloaded over the network and validated by phoning aspecial number, just as today's credit cards are validated. Billing willbe by any desired method, typically by mail as presently used forplastic credit cards.

FIGS. 15A and 15B illustrate the code minute and code hour tables forthe VCC transaction of FIG. 14. Note that the clock tables are uniquefor the VCC.

FIG. 16 illustrates the computing device of FIG. 5 with an ATM(Automatic Teller Machine) transaction selected.

FIGS. 17A and 17B illustrate the code minute and code hour tables forthe ATM transaction of FIG. 16. Note that the clock tables are uniquefor the ATM. The clock tables may further be unique for each cardholderor computing device.

FIG. 18 illustrates the computing device of FIG. 5 with a subway faretransaction selected. The computing device has particular benefits forsubway fares and other small transactions as further described in thisdisclosure.

FIGS. 19A and 19B illustrate the code minute and code hour tables forthe subway fare transaction of FIG. 18. Note that the clock tables areunique for the subway fare.

Small Purchases

In one embodiment of the invention, small transactions may be madeinstantaneously by postponing bank validation. Bank validation andaccount reconciliation may be delayed and performed in a batch, forexample, once each day for all transactions occurring during theprevious twenty-four hours. Other time intervals may be selected. Sincethe trasaction is a small amount, bank and merchant risk is limited,permitting faster transaction time by delaying the validation andaccount reconciliation. Using the time dependent CVV code 114 asdisclosed herein, the merchant records the account time along with thecard number and time dependent CVV to have sufficient information forthe bank to validate the time dependent CVV 114 and transaction. Therecording of all information may be automatic by the merchant'sterminal. Fast transactions speed sales and handling of customersthrough lines at such establishments as fast food restaurants, subwayturnstiles, tollbooths and others.

As a further limitation on risk, the cell phone terminal may limit smalltransactions to some number, for example, ten per day. The smalltransaction amount may be limited to some predetermined value, forexample, twenty-five dollars. Other numbers or values may be set. Thenumber and value may be set in accordance with the purchaser's FICOscore and/or past payment history or other factors. Because the deviceis networked, preferably to a cell phone network, the small transactionfeature and limits may be set dynamically at anytime by the bankequipment calling the cell phone to automatically set feature limitsand/or to enable and disable the feature. Further, if the smalltransaction feature were disabled, the device may still permit normaltransactions requiring validation for each purchase.

Two Readings

The present invention may further speed sales transactions by allowingtwo readings of the credit card information. For example, for a subwaypayment, the cell phone's credit card module may be activated andscanned by a barcode reader upon first entering the subway terminal.This may be done while walking past. The reader will send theinformation for processing, which may take ten seconds. By the time theturnstile is reached, the account will have been verified and a secondscanning of the barcode may authorize entry.

In a second example at a grocery store, the cell phone's barcode may bescanned just prior to unloading food items at the checkout. By the timecheckout is completed, the card may be activated and the cashier mayprovide the sales receipt without delay.

In a third example at fast food restaurant, the barcode may be read atorder entry and may be fully approved before order pickup.

In a further embodiment, the barcode may be read upon entering anestablishment to authorize the credit card to a certain credit limit.Upon checkout the flatbed scanner will automatically complete thetransaction by interfacing with the cell phone. This process may bebetter understood by the following example:

When the cardholder enters a convenience store and runs the activatedcell phones display over a barcode reader the card details will be sentto banks transaction center for activation. By the time the cardholderhas completed shopping, the bank's transaction center will have returnedan authorization with a credit limit to the merchants POS (Point ofSale) system. When the cardholder arrives at the checkout counter, theflatbed barcode scanner will recognize the cell phone device by thebarcode displayed and cause the POS terminal to beep or light up a LEDto notify the attendant that the cardholder has been approved with thedollar amount available. The flat bed scanner may include a CCD (chargecoupled device) for reading the barcode.

After the store attendant has completed ringing up the items, the dollaramount from that purchase will be credited to the merchant's account anddebited from the cardholder's account.

The flatbed scanner will then output a barcode containing the totaldollar amount and store name, which will be read by the cell phonescamera. The cell phones software will update the database including thedollar amount remaining in the credit or debit account and themerchant's name. This will allow the cardholder to keep track of theaccount. The process would work the same way in other situations, forexample, in the subway where there is no attendant.

Account Payment Using Barcode Information Exchange

FIG. 20 illustrates an exemplary system having a direct opticalinterface between the merchant equipment and the customer's computingdevice. Two way communications is accomplished by displaying barcodes onthe customers computing device 302 a, (e.g. cell phone) to be read bythe merchant's barcode scanner 418 and by displaying barcodes at thescanner to be viewed by the customer's cell phone camera. Referring toFIG. 20, the merchant's terminal 418 includes a display that can display2002 a barcode to the cell phone's camera in addition to the scanningmechanism that can read 2004 a barcode from an item to be purchased. Thecell phone includes software that can analyze the camera image anddecode the barcode. Thus, the scanner and cell phone can communicate inboth directions 2002 and 2004 using barcode displays and readers in eachcorresponding device. This capability gives rise to several beneficialaccount processes.

In one embodiment, the cell phone 302 a may communicate through the cellphone network 316 to a financial institution 410, e.g., a bank, toestablish an account. Account particulars may be stored in the cellphone 302 a. In one embodiment, funds may be electronically transferredto the cell phone 302 a by allocating funds at the bank 410 and storingthe allocated amount in the cell phone 302 a. At the merchant'slocation, the cell phone 302 a may be used like a credit card orshopping card, except that instead of running the card through the cardscanner, the cell phone 302 a is placed on the merchant's adaptedbarcode scanner 418. The merchant's scanner can read account informationfrom the cell phone 302 a and can then communicate with the bank 410, asneeded for authorization. In the case where funds are transferred to thecell phone, authorization from the bank would be unnecessary. When apurchase is made, the purchase price is subtracted from the cell phone'saccount in cell phone memory and a corresponding debit is generated bythe merchant's terminal for a corresponding account at the customer'sbank. As a further feature, the merchant's scanner can utilize securityinformation collected by the cell phone, such as a PIN or password orfingerprint matching information, to further secure the transaction.Depending on established policies, the merchant's equipment may dispensewith the need for further signatures by the purchaser based onfingerprint or other positive ID information collected by the cellphone.

In one embodiment, positive identification of the customer, such as byfingerprint matching, may enable customer age information to be conveyedto the merchant for age dependent purchases, such as for beer orcigarettes, or for senior discounts—potentially enabling self checkoutof these items.

FIG. 21A and FIG. 21B illustrate two views of an exemplary barcodescanner including a barcode generator in accordance with the presentinvention. FIG. 21A shows a side view and FIG. 21B shows a front view.Referring to FIG. 21A and FIG. 21B, the barcode scanner 418 comprises awindow 2106 and a scanning mechanism 2102 to scan barcodes. The scanningmechanism 2102 typically scans barcodes from merchandise placed on thewindow 2106. The dotted lines represent the field of view of thescanning mechanism 2102 viewing the scanner window 2106. The scanner ofFIG. 21A is shown scanning a cell phone 302 a placed on the window 2106.The cell phone 302 a produces a barcode display on the cell phonedisplay that is encoded with account information needed for thetransaction. The merchant equipment 418 also includes a display 2104which may display a barcode encoded with transaction amount, vendorname, and other information as needed or desired for the transaction.The merchant display 2104 may be read by the cell phone 302 a using thecell phone camera to generate an electronic receipt or for debitingaccount balances in the cell phone memory, and/or recording transactiondetails. Dotted lines are also shown to indicate the field of view ofthe cell phone 302 a camera reading the merchant display 2104.

FIG. 21A and FIG. 21B show a single scan mechanism and a single windowfor scanning both the cell phone 302 a and merchandise; however analternative embodiment may dedicate a station for cell phone interfaceand a separate station for merchandise.

FIG. 22 illustrates an exemplary cell phone in accordance with thepresent invention. Referring to FIG. 22, cell phone 302 a includes thefeatures of cell phone 302 of FIG. 3 with the addition of a camera 2202.The cell phone 302 a is further adapted for account transactions byincluding software to read barcodes using the camera. The cell phone cangenerate barcodes for the display 310. The display 310 is typically thesame display used for normal cell phone applications. The software mayalso manage account information in memory 308 and may include necessaryencryption technology to protect the account information. The softwaremay also interface with the fingerprint reader 318 and/or keypad 312 forPIN numbers or passwords for positive user identification. It may benecessary to utilize a sequence of successive barcodes to accomplish thefull communication where a single barcode is insufficient. It may beappreciated that many barcode standards are available which may be usedwith this invention. Standards include one dimensional and twodimensional barcodes, where information is encoded spatially along oneor two dimensions. Any suitable barcode may be used. The cell phone 302a may utilize the cell phone network 316 for communication with the bank410 to establish or replenish accounts, for viewing account status, orother account maintenance activities.

The invention is well suited for application to self checkout countersat grocery stores. The customer arrives at the checkout counter with oneor more items. The customer then activates the mobile paymentapplication in the cell phone 302 a. The customer may then select thesmall payments option to use funds stored within the cell phone 302 a,i.e., funds for which a funds available amount is maintained within thecell phone 302 a. The customer then places the cell phone 302 a on thestationary barcode reader 418, where the account number and accountdetails, including funds available may be read. Each item is then runover the merchandise barcode scanner 2102 to get item and priceinformation. As each item is scanned, the funds are immediatelytransferred from the cell phone 302 a and the cell phone account isupdated by sending item and price information to the cell phone 302 athrough the merchant display 2104 to cell phone camera 2202 informationpath 2002. This allows the customer to purchase a single item and walkout without delay. Additional items may be purchased, as long as thecell phone 302 a is left on the scanner, 418 by simply continuing toscan items. When completed, the cell phone 302 a is removed, and amerchant's supervisor station, if present, may be automatically notifiedthat all items are paid for. The cell phone database and accountinformation are now current.

In one embodiment, funds may be added to the account in the cell phoneat the merchant location. The customer may pay cash or other acceptablefunds to the merchant for the merchant to credit the funds to the cellphone account. The merchant equipment 418 reads the account number fromthe cell phone display 310 and sends the amount to the cell phone 302 ausing the merchant display 2104. The cell phone 302 a receives theamount by reading the barcode on the merchant display 2104 using thecell phone camera 2202 and updates the available amount in the cellphone memory 308. The merchant terminal 418 may also send a copy of thetransaction to the bank 410 associated with the account. The cell phoneaccount may be established in one of two modes. One where the funds arean allocation of funds in a bank account. Another, where the funds areeffectively in the cell phone with no corresponding bank account.

Alternatively, the customer may select credit card payment. In thisscenario, the customer arrives, as before, with items to be purchased.The customer may scan all items and obtain a total for the sale. Thecustomer then activates the mobile payment application in the cell phone302 a and then selects the credit card or VCC to be used and places thecell phone 302 a on the barcode reader 418. The merchant's POS system418 then scans the cell phone barcode information on the cell phonedisplay 310 to obtain the credit card number and sends the number to thebank 410 for authorization. A typical credit card number includes bank410 identification. When authorization is received, the POS system 418will send the transaction details to the cell phone 302 a by displayingbarcode information to the cell phone camera 2202. The cell phone camera2202 reads the barcode information and records the sale information incell phone memory, updating any account information as necessary. Thecell phone 302 a may also respond by presenting receipt confirmationinformation as barcode information on the cell phone display 310 to beread by the merchant scanner 418, thus completing the salecommunications. The merchant system 418 may then beep, alerting thecustomer that the sale has been approved and completed. The customer maythen remove the cell phone 302 a. The cell phone 302 a now contains thetransaction amount, merchant date/time and item information.

CONCLUSION

The capabilities of the present invention can be implemented insoftware, firmware, hardware or some combination thereof. As oneexample, one or more aspects of the present invention can be included inan article of manufacture (e.g., one or more computer program products)having, for instance, computer usable media. The media has embodiedtherein, for instance, computer readable program code means forproviding and facilitating the capabilities of the present invention.The article of manufacture can be included as a part of a computersystem or sold separately. Additionally, at least one program storagedevice readable by a machine, tangibly embodying at least one progmm ofinstructions executable by the machine to perform the capabilities ofthe present invention can be provided.

The flow diagrams depicted herein are exemplary. There may be manyvariations to these diagrams or the steps (or operations) describedtherein without departing from the spirit of the invention. Forinstance, the steps may be performed in a differing order, or steps maybe added, deleted or modified. All of these variations are considered apart of the claimed invention.

While particular embodiments of the invention have been described, itwill be understood, however, that the invention is not limited thereto,since modifications may be made by those skilled in the art,particularly in light of the foregoing teachings. It is, therefore,contemplated by the appended claims to cover any such modifications thatincorporate those features or those improvements that embody the spiritand scope of the present invention.

1. A system for generating a sales transaction comprising: a merchantterminal for communicating with a customer computing device, saidmerchant terminal comprising: an optical scanner, said optical scannerdirected to said customer computing device for reading informationdisplayed thereon; and a merchant display device for displaying a firstoptically readable pattern, said optically readable pattern havingmerchant transaction information encoded thereon; said customercomputing device comprising: a customer display device for displaying asecond optically readable pattern, said second optically readablepattern having customer transaction information encoded thereon; and anoptical camera for reading said merchant transaction information fromsaid merchant display device; wherein said optical scanner readscustomer account information from said customer display device, saidmerchant terminal communicates with a financial institution associatedwith said customer account information to obtain approval for saidtransaction; said merchant terminal displaying transaction receiptinformation on said merchant display device; said optical camera readingsaid transaction receipt information from said merchant display device.2. The system of claim 1, wherein said first optically readable patternis a barcode.
 3. The system of claim 1, wherein said second opticallyreadable pattern is a barcode.
 4. The system of claim 1, wherein saidcustomer computing device is a cell phone.
 5. The system of claim 1,wherein said optical scanner also scans a barcode from an item ofmerchandise.
 6. The system of claim 1, wherein said customer computingdevice communicates with said financial institution to electronicallystore funds in said customer computing device.
 7. The system of claim 1,wherein said customer computing device further includes a fingerprintreader and fingerprint matching information is conveyed to said opticalscanner using said customer display device.
 8. The system of claim 1,wherein said customer computing device further includes a fingerprintreader for positive user identification and after positive useridentification is achieved, user age information is conveyed to saidoptical scanner using said customer display device.
 9. A system forgenerating a sales transaction between a customer and a merchantcomprising: a merchant terminal for communicating with a customercomputing device, said merchant terminal comprising: a first opticalscanner for scanning a barcode on an article of merchandise; saidmerchant terminal generating a transaction price based on said scanningsaid barcode on said article of merchandise; a second optical scanner,said optical scanner directed to said customer computing device forreading information displayed thereon; and a merchant display device fordisplaying a first optically readable pattern, said first opticallyreadable pattern having merchant transaction information encodedthereon; said customer computing device comprising: a customer displaydevice for displaying a second optically readable pattern, said secondoptically readable pattern having customer transaction informationencoded thereon; and an optical camera for reading said merchanttransaction information from said merchant display device; a memorydevice for storing an account number and an amount of funds available,said customer computing device communicating over a cell phone networkwith a financial institution to allocate said amount of funds available;wherein the second optical scanner reads said account number and saidamount of funds available from said customer computing device; saidcustomer computing device reads said transaction amount from saidmerchant display device and subtracts said transaction amount from saidamount of funds available; said merchant terminal sends a debit note toa customer bank for payment to the merchant for the transaction amountfrom an account designated by the account number. wherein said customercomputing device stores an allocated fund amount in said customercomputing device; said second optical scanner reads said accountinformation from said customer display; said merchant terminal displaystransaction information on said merchant display, said optical camerareads said transaction receipt information from said merchant display.10. The system of claim 9, wherein said first optically readable patternis a barcode.
 11. The system of claim 9, wherein said second opticallyreadable pattern is a barcode.
 12. The system of claim 9, wherein saidcustomer computing device is a cell phone.
 13. The system of claim 9,wherein said first optical scanner and said second optical scannercomprise the same optical scanner.
 14. The system of claim 9, whereinsaid customer computing device communicates with said financialinstitution to electronically store funds in said customer computingdevice.
 15. The system of claim 9, wherein said customer computingdevice further includes a fingerprint reader and fingerprint matchinginformation is conveyed to said merchant terminal using said customerdisplay device.
 16. The system of claim 9, wherein said customercomputing device further includes a fingerprint reader for positive useridentification and after positive user identification is achieved, userage information is conveyed to said merchant terminal using saidcustomer display device.
 17. A method for purchasing an article ofmerchandise by a customer of a merchant comprising: obtaining articleinformation including price information based on barcode scanning ofsaid article; generating a transaction price based on said priceinformation; generating a first optically readable pattern on a displayof a customer computing device, said optically readable pattern havingcustomer account information encoded thereon; said account informationincluding account number and funds available as stored in said customercomputing device; reading said first optically readable pattern by amerchant optical scanner and decoding said customer account information;generating a second optically readable pattern on a display associatedwith said merchant optical scanner, said second optically readablepattern having said transaction price encoded thereon; reading saidsecond optically readable pattern by said customer computing device anddecoding said transaction price from said second optically readablepattern; deducting said transaction price from said funds available asstored in said customer computing device; generating a debit note forpayment to said merchant by said account number directed to a bankassociated with said account number.
 18. The method of claim 17, furtherincluding the step of: repeating the steps of claim 17 for an additionalitem of merchandise.
 19. The method of claim 17, further including thestep of: adding additional funds to said finds available as stored insaid customer computing device, said step of adding additional finds tosaid finds available comprising the steps of: generating a thirdoptically readable pattern on said display associated with said merchantoptical scanner, said third optically readable pattern having saidadditional funds encoded thereon; reading said third optically readablepattern by said customer computing device and decoding said fundsavailable from said third optically readable pattern; and updating saidfunds available by adding said additional funds as decoded from saidthird optically readable pattern.